10/10/2012 (Reuters) - Malaysian palm oil futures rose to their highest in more than a week on Tuesday, supported by a possible export tax change, while traders took positions ahead of key industry data due out this week.

Prices made some headway after a Malaysian government minister said on Monday his country will discuss possible changes to its crude palm oil export tax regime on Friday.

"We believe the current crude palm oil (CPO) price is still unjustifiably low. We expect prices to rebound further by year-end, as post high production, we expect CPO price to climb higher," said Hong Leong Investment Bank's Chye Wen Fei in a research note.

But stocks could still weigh on the market for now. The Malaysian Palm Oil Board (MPOB) is set to announce record stocks in September on Wednesday.

"The upcoming MPOB inventory level should see it reaching an all-time high of 2.43 million tonnes, capping any strong price upside potentials," Kenanga Investment Bank analyst Alan Lim said in a note.

The benchmark December contract on the Bursa Malaysia Derivatives Exchange jumped 3 percent to close at 2,438 ringgit ($794) per tonne. Prices earlier went as high as 2,455 ringgit, a level last seen on Oct. 1.

Total traded volumes stood at 31,077 lots of 25 tonnes each, higher than the usual 25,000 lots.

Palm oil may edge up to 2,503 ringgit per tonne, said Reuters market analyst Wang Tao based on a wave analysis.

Indonesia and Malaysia, the world's dominant palm oil producers, are in talks to form a joint body that will seek to support prices by reducing stocks and controlling supplies of the edible oil, government trade officials said on Tuesday.

Malaysia's Felda Global Ventures will develop oil palms in the southern Philippines after Manila agreed on a historic peace deal with Muslim rebels that could open up tracts of farm land, chief executive Sabri Ahmad said.

In a bullish sign for palm oil, oil rose on Tuesday after two days of losses, with tensions in the Middle East and the risk of supply disruptions outweighing concerns about sluggish global demand.

In other vegetable oil markets, U.S. soyoil for December delivery gained 1.3 percent in late Asian trade.

The most active January 2013 soybean oil contract  on the Dalian Commodity Exchange closed 1.1 percent higher, recovering from previous day's 4-month low.    

  Palm, soy and crude oil prices at 1008 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      OCT2    2268   +40.00    2250    2270      55
  MY PALM OIL      NOV2    2384   +70.00    2359    2388    1275
  MY PALM OIL      DEC2    2438   +70.00    2392    2455   18462
  CHINA PALM OLEIN JAN3    7014   +96.00    6880    7046  560080
  CHINA SOYOIL     JAN3    9218  +104.00    9120    9228  373606
  CBOT SOY OIL     DEC2   51.58    +0.65   50.93   51.69    8096
  NYMEX CRUDE      NOV2   89.80    +0.48   89.29   90.33   22058

  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  Crude in U.S. dollars per barrel
  ($1=3.069 ringgit)